The Economy.. will hi end audio mfgs lower prices?

There is a lot of disinformation out there. The last significant recession in 1981 was marked by 11 percent unemployment and interest rates of 19%. We are currently at 8.5% and interest rates are at .35%. Much of our contraction comes from a false real estate economy that was allowed to foster between 2003 and 2007, the so called "bubble." If you look at the stock market, it has merely reset it prices back to 2002. So the real question is:

0 Will the 92% of gainfully employed people still buy quality goods?

0 Will luxury brands reset their mark-ups to be more in line with the current reality.

I think the answers are both Yes.

Don't get caught up in the fear that the press is spreading. This country had 3 and 1/2 millionaires in 2006 and this country drives 40% of the global GNP.

In evaluating price changes from foreign manufacturers, keep in mind that some of the apparent reductions are simply a reflection of variations in currency exchange rates, especially given the recent strengthening of the USA dollar. They may therefore have no long-term significance.

Every response thus far has had at least a grain of truth in it.

As for gvt. spending, gvt. spending has in truth gottten us out of depression, WWII, the biggest gvt. spending program in the history of the world, 42-44% of GDP, depending on whose statistics you believe.

On the other hand, gvt. spending will have major costs down the road, inflation and debt are only the beginning.

And then you can have little or no gvt. spending, let the market speak, a lot of suffering will occur his way as well. Debts need to be paid down, 30 years of a go-go economy will take a long time to recover from. And then can you say, unemployment, watch out, gvt. will be spending big time again to support the unemployed, perhaps a deflationary spiral with no end in sight.

And then we have the middle way, middling amount of spending, middling amount of recovery. Many are going to suffer, gvt. will only save the middling few. I suspect this is the path we'll follow, ideologies count for everything today, people won't put up with doing nothing or doing everything (the conservative vs. socialist agendas). Still, perhaps this is the best path.

And so the middling path and audio. Audio spending will be down long term, some are going to suffer, others will continue.

Any discussion of the future of our economy is pure speculation at this point. We have never been in this position before, what works will only be determined by the facts of what happen. I think we'll have a better idea sometime late this year.

Real Estate,Stock prices are down = wealth down =
Demand Down = Lower prices

I think quality at a certain price point, rather than items costing 3x as much for that extra 2% in performance, are going to be where the markets will be strong. People like us will still be spending money on gear, but it may not be as much as before. $2000 interconnects and $15,000 preamps just aren't going to be popular. Others looking to get into 2-channel will have a set budget, and it may not be $15,000 anymore: perhaps they only have $4000 to spend, and that is still alot of money. They should be able to get something that sounds great for that price, not "mid-fi".